Zeta Global Reports Record Revenue for Q3 2024
Intellectia.AI
Zeta Global Reports Record Revenue for Q3 2024
Zeta Global (NYSE: ZETA), the AI-Powered Marketing Cloud, announced its financial results for the third quarter ending September 30, 2024.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | Change Y/Y (%) |
|---|---|---|---|
| Total Revenue | $268.3 million | $188.9 million | +42% |
| GAAP Net Loss | $17.4 million | $43.1 million | N/A |
| GAAP Loss Per Share | $0.09 | $0.27 | N/A |
| Operating Cash Flow | $34.4 million | $22.8 million | +51% |
| Free Cash Flow | $25.7 million | $13.4 million | +93% |
| Adjusted EBITDA | $53.6 million | $33.7 million | +59% |
| Adjusted EBITDA Margin | 20.0% | 17.9% | N/A |
Interpretation : Zeta Global has experienced substantial growth in financial performance, highlighted by a 42% year-over-year increase in total revenue, driven primarily by gains in direct platform revenue. The net loss reduction and improvements in cash flows and adjusted EBITDA are indicative of increased operational efficiency and solid market performance.
Revenue Performance by Segment
| Segment | Q3 2024 Revenue | % of Total Revenue | Change Y/Y |
|---|---|---|---|
| Direct Platform Revenue | $188.81 million | 70% | +41% |
Interpretation : The momentum in direct platform revenue, comprising 70% of total revenue, is a key driver of the company's overall financial success. This segment's significant year-over-year growth underscores Zeta’s strength in leveraging its AI-powered tools to enhance marketing solutions.
Key Developments and Operational Highlights
- Scaled Customer count increased to 475, up from 440 in Q3 2023.
- Super-Scaled Customer ARPU reached $1.6 million, marking a 30% year-over-year increase.
- Implementation of a share repurchase program, with $3.9 million of shares repurchased.
Comments from Company Officers
David A. Steinberg, Co-Founder, Chairman, and CEO, emphasized the success attributed to long-term investments in AI and the '1 of 1' marketing platform, leading to the record third-quarter results. CFO Chris Greiner highlighted ongoing momentum throughout the fiscal year and the revised guidance, expressing optimism for continued growth into 2025.
Dividends and Share Repurchase Program
A share repurchase program is actively being implemented, with $3.9 million worth of shares repurchased recently.
Forward Guidance
For Q4 2024, Zeta increased its revenue guidance to a range of $293.0 million to $297.0 million, projecting a year-over-year increase of 39% to 41%. Full-year 2024 guidance is also revised upwards, forecasting total revenue between $984.1 million to $988.1 million, reflecting an increase of 35% to 36%.
Stock Price Movement
Post-earnings release, Zeta Global’s stock saw an increase of approximately 3.37%.
Zeta Global’s robust results and optimistic guidance signal continued strength in its core operations, buoyed by strategic AI investments and effective customer engagement strategies.
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